Lightstone Value Plus REIT IV, Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Lightstone Value Plus REIT IV, Inc. performed this year. My goal is to translate complex financial filings into plain English so you can decide if this investment still fits your goals.

1. What does this company do?

Think of this company as a real estate investment pool. They use investor money to buy or build properties. They are currently focused on two main projects in New York City:

• The Williamsburg Moxy Hotel: They own a 75% stake in this 216-room hotel in Brooklyn. It opened in 2022 and is the company’s main source of income.
• 40 East End Ave: This is a luxury condo project in Manhattan. The company owns a 33.3% stake. They have sold 27 of the 29 units and are now working to sell the final two units to wrap up this project.

2. Financial Performance & Health

The most important number for you is the Net Asset Value (NAV). As of December 31, 2025, the board set the value of each share at $9.38. This reflects the current appraisals of their properties.

Because this is a "private" REIT, you cannot trade these shares on a public stock exchange. Your money is "illiquid," meaning it is tied up until the company sells its properties or lists on a public exchange. There is a limited program to buy back shares, but it depends on board approval and available cash. You are not guaranteed the ability to cash out whenever you want.

3. The "Inside Scoop" on Management

The company is run by an outside team, The Lightstone Group, led by David Lichtenstein. He is the Chairman and CEO, and he owns a significant stake in the company.

Because the REIT has no employees of its own, it relies on this outside team for everything from accounting to property management. The managers also run other real estate projects, and they earn fees based on the deals they make. The manager collects fees based on the money invested in the REIT, regardless of whether the company is currently making a profit or paying you dividends.

4. Key Risks: What could go wrong?

• The "Waiting Game" on Debt: The company owes $14.4 million to its own sponsor. This debt is only paid if the company is liquidated, and even then, investors receive their full investment plus an 8% return before the sponsor is paid. This shows the company relies on internal loans to cover costs.
• Concentration Risk: Almost all their properties are in New York City. If the NYC real estate market struggles, the whole company suffers. The hotel is especially sensitive to changes in tourism and business travel.
• No Easy Exit: There is no active market for these shares. Do not invest money here that you might need for an emergency. Your capital is committed until the properties are sold, which could take a long time.

5. Future Outlook

The company aims to protect your initial investment and pay dividends when possible. They are currently focused on running the hotel and selling the last two condos. They are keeping things steady with no new projects announced. Their main goal is to use the hotel’s income to support future dividends while waiting for better interest rates to sell or refinance their assets.

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Final Thought for Your Decision: This investment is currently a "wait and see" situation. Because your capital is tied up in a few specific NYC properties, your returns depend heavily on the success of the Williamsburg hotel and the final condo sales. If you are looking for a liquid investment you can sell quickly, this is likely not the right fit. However, if you are comfortable with a long-term hold and want exposure to these specific NYC assets, it is worth keeping an eye on their next update regarding the hotel's performance and the status of the final condo units.